Global Telecoms Revenue to Reach $2.2 Trillion in 2013

Published on: 29th Jan 2013

Note -- this news article is more than a year old.

The global telecommunications industry was not immune to economic forces in 2012 that slowed growth from earlier predictions according to a new market analysis report from Insight Research. Spending for wireline services contracted in 2012 while spending on wireless services grew modestly.

­According to the new industry market study,
telecommunications services revenue worldwide will grow from $2.2 trillion in
2012 to $2.7 trillion in 2018 at a combined average growth rate of 3.8 percent.

The report notes that wireless subscriber growth compounded with rising usage
will raise wireless revenues by 31 percent from current levels, yet wireline
revenues will remain flat until substantial economic recovery kicks in. Despite
these modest gains, there are some sectors, such as Ethernet, Cloud, and Mobile
Solutions, that will show double-digit annual percentage growth.

In North America, wireless revenues will grow by 35 percent and wireline
broadband revenues will grow by 19 percent over current levels.

"Telecommunications revenues are driven by several factors-economic
conditions, household expansion, population, and disposable income-to name a
few. Until these indicators strengthen we will continue to see modest
improvements in growth areas, such as wireless data and IPTV, along with
declines in mature services, such as voice and wireline data," says Fran
Caulfield, Research Director for Insight Research.

"Global telecommunications spending will hover around 3 percent of GDP;
slightly lower in the US. Despite the weakness in these indicators, the fact
remains that telecommunications is a key enabler of economic growth and service
providers with the right strategy will prosper," Caulfield concluded.

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